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Grocery Apps Can Build Loyalty

St. Joe's/FMI study finds savings, convenience as key drivers

July 22, 2015, 03:57 pm

Consumers download smartphone apps developed by grocery retailers for savings and convenience, according to a three-year research project by St. Joseph’s University and the Food Marketing Institute (FMI). These reasons are quickly matched by enjoyment and enthusiasm for mastering the app.

The research concluded that grocery retailers can expect to see a correlation between how engaging and entertaining their app is and their digital customer retention.

“The findings are exciting for food retailers,” says Nancy M. Childs, Ph.D., Gerald E. Peck Fellow and professor of food marketing at Saint Joseph’s University, who employed both qualitative and quantitative methods to measure consumer behavior for the Peck Fellowship research report. “Grocery app use is important to track and engages customer loyalty, and app quality and functionality can differentiate retailers in a consumer’s mind.”

Childs also found that active grocery app users are not overly concerned about their privacy, but appreciate transparency by retailers regarding how their data is used.

“Digital trust is key,” she says. “The more consumers feel they are in control of their data, the more generous they are with information, and the more they are locked into an app for sales. The level of digital trust a consumer has with an app is critical and will be a meaningful differentiation when choosing grocery apps.”

Childs’ research with FMI over the past three years has focused on multiple aspects of digital grocery commerce, while this recent report focused on consumer perspectives of grocery retailer mobile apps and digital trust.

For a copy of the report, visit www.fmi.org/store. Members of the press can request a gratis copy through FMI’s media relations team or visit their website.